For the first time, closings under $500,000 and above $5M had equal market share
NEW YORK, Oct. 3, 2017 /PRNewswire/ -- Stribling & Associates, a premier New York residential brokerage, today releases the third quarter Manhattan Market Report. The report, which covers the entire borough, reveals mixed sales activity, several submarket price increases, and an increased demand in the more affordable price brackets. The Downtown submarket outpaced the rest of the city in terms of total number of sales and average prices.
"Downtown continued to be the most expensive market in the third quarter, but we are seeing a slight pullback in terms of pricing," said Garrett Derderian, Director of Data & Reporting at Stribling. "The yearly increases have tapered Downtown, while other markets, like Midtown East and West, saw double-digit growth over last year. We expect that to continue." Derderian cited upcoming closings for units already in contract along Billionaires' Row, in Midtown East, as a key driver.
The report also mentioned the decline in less expensive sales as a direct result of the shrinking class of inventory. As Derderian noted, "There are more units on the market priced above $10M than below $500,000."
He also highlighted, "What we found, for the first time, was closings under $500,000 and above $5M had equal market share, both at 10%. These high-priced deals, fueled almost entirely by new development, are expected to increase market share in the near-term." Derderian stated, "Properties selling for under $500,000 are almost exclusively co-op resales."
Rising land and labor costs in Manhattan have proven cost-prohibitive to building new units in the lower price brackets. "From a developer prospective, it is financially unworkable to bring a unit to market under $500,000. This is true even for Upper Manhattan, which remains the most affordable submarket."
However, the report also revealed condo and co-op inventory prices remained relatively flat year-over-year. "The key takeaway is that, while Manhattan has experienced tremendous growth over the past several years, we are beginning to see sellers price more realistically," Derderian said. "While the market remains strong, many buyers have plenty of options to choose from, the ability to negotiate, and time to wait it out."
Highlights from Stribling & Associates 3Q Manhattan Market Report:
- Median sales price was $1,250,000
- Average sales price dipped to $2,167,096
- Average price per square foot was $1,566
- Average days on market is 106
- There are 7.1 months of supply, up from 6.1 last year
- There were more closings above $5M than below $500K
- The number of available listings increased 10% YoY to 6,379
- Condo units made up the largest share of inventory, with 53%
- Condo units had an average PPSF of $2,079
- Co-op units were the most affordable, with an average PPSF of $1,278
- 2BRs made up 32% of inventory
- The $1-3M bracket totaled 41% of inventory
- There was more inventory priced above $10M than below $500K
- Upper Manhattan condos had a median rise of 21% to $955,500
- Upper West Side co-ops median price increased 43% to $1,349,500
- Total contracts signed decreased 14% to 2,090
- 1BRs made up 39% of all contracts signed
- Condo units priced below $500K and above $20M saw the greatest median and average price increases
- Co-ops priced between $10-20M had the most significant price gains
- Downtown captured the most contracts signed, with 29%
- Midtown West saw the least number of contracts, at 4%
- Downtown averaged the highest PPSF, $1,840, and largest apartments, 1,354 square feet
- Upper Manhattan condos were the only ones to see median, average, and PPSF increases
- Upper West Side and Upper Manhattan co-ops posted the strongest yearly gains
- There were 2,740 recorded sales to date, a 9% decrease from one year ago
- Co-ops made up the largest share of closings, with 51%
- Condos totaled 44% of all deals
- Condos were the most expensive, with an average PPSF of $1,819
- 1BR units captured 36% of all sales
- 4+BRs, with 7% sales, had the highest average PPSF of $2,323
- All condo unit types experienced price reductions, with 4+BRs seeing the steepest declines
- 4+BR co-op units had the greatest price appreciation; the median was up 9% and average 31%
- $20M+ condo sales noted the biggest yearly price declines; the average PPSF dropped 21%
- Downtown captured the greatest share of closings, with 32%, and was the most expensive market with the largest apartments
- Midtown East and Midtown West condos had the greatest median and average price rises
- Upper East Side co-ops saw a median rise of 19% and average increase of 22%
To view the Q3 Manhattan Market Report, and other research by Stribling & Associates, please visit our website: http://www.stribling.com/market_reports
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout three locations in Manhattan and one in Brooklyn. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.
Ashley Murphy, Director of Public Relations